Self-Employed Mortgages — Expert Guide 2025

Getting a mortgage when self-employed is absolutely possible. This guide explains exactly what lenders look for, what documents you need and which lenders are most flexible.

✓ Updated June 2025·✓ FCA regulated partners

⚡ Quick Answer

Self-employed borrowers can get mortgages at the same rates as employed people — you just need to prove your income differently. Most lenders need 2–3 years of accounts or tax returns (SA302s). Some specialist lenders accept 1 year of trading history.

How Lenders Assess Self-Employed Income

Sole Trader / Partnership

  • 2–3 years SA302 tax calculations
  • Tax year overviews from HMRC
  • 3–6 months business bank statements
  • Lenders use net profit figure

Limited Company Director

  • 2–3 years company accounts
  • SA302 personal tax returns
  • Some lenders use salary + dividends
  • Some use salary + share of net profit
💡

Expert Tip

Get your SA302s directly from HMRC — they're accepted by all lenders and available instantly via your HMRC online account ↗. Using a specialist self-employed mortgage broker is strongly recommended as they know exactly which lender suits your income structure.

Lenders Friendly to Self-Employed (2025)

LenderMin Trading HistoryIncome BasisMax LTV
Halifax1 year (some cases)Net profit / Salary+Div90%
Nationwide2 yearsAverage 2yr net profit85%
Kensington1 yearLatest year accounts85%
Precise1 yearNet profit or Salary+Div80%
Aldermore1 yearSalary + retained profit80%

How to Boost Your Chances

  1. Have at least 2 years of accounts prepared by a qualified accountant
  2. Avoid reducing your income excessively through expenses if you plan to apply soon
  3. Save a larger deposit (15–25%+) to access better rates
  4. Check your credit file 6+ months before applying: Experian ↗
  5. Use a whole-of-market broker who specialises in self-employed mortgages

Frequently Asked Questions

Yes — some specialist lenders including Kensington, Precise and Aldermore will consider 1 year of trading history. Mainstream lenders like Halifax may also consider it for strong cases. You'll typically need a larger deposit (15–25%) and a good credit score.
Most lenders use one of two methods: (1) Salary + dividends drawn — what you actually take out, or (2) Salary + company net profit — your share of what the company made. The second method often gives a higher borrowable amount. A specialist broker can identify which lenders use each approach.
No — if you meet the lender's criteria, you'll pay the same rates as employed borrowers. The challenge is proving your income, not the rate you pay. Some adverse credit specialist lenders charge more, but that's related to credit history, not self-employment.
Key takeaways
  • Compare total cost over the fixed period — rate plus fees, not headline rate alone
  • Start remortgage shopping up to 6 months before your fix ends — you can lock now and switch if rates fall
  • Whole-of-market brokers see deals comparison sites don't carry, especially for non-standard income
  • Get a soft-search decision in principle before house-hunting — it costs nothing and reveals problems early

What the Comparison Sites Won't Tell You

The single biggest lever on price is loan-to-value. Lenders price in bands — 95%, 90%, 85%, 80%, 75% — and crossing a band boundary can cut your rate by 0.3–0.6 percentage points. Before applying, check whether a small top-up to your deposit crosses a threshold: on a £200,000 loan that's £2,000–£5,000 over a fix.

Product fees deserve as much attention as rates. A £1,499 arrangement fee on a lower rate only pays off above a certain loan size — roughly £150,000+ for typical gaps. Run both totals over the fixed period before deciding.

Timing your remortgage matters more than most borrowers realise. Most lenders let you secure a new rate up to 6 months before your current deal ends — if rates rise you're protected, and if they fall you can usually re-lock lower before completion.

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